Question

What is the requirement for appointing a custodian for the safekeeping of securities by AIFs?

a.

A custodian is mandatory for all AIFs

b.

A custodian is mandatory only if the corpus of AIF is more than 500 crore rupees

c.

A custodian is mandatory only for Category III AIFs

d.

A custodian is not required for any AIF

Answer: (b).A custodian is mandatory only if the corpus of AIF is more than 500 crore rupees Explanation:The Sponsor/Manager of AIF shall appoint a custodian registered with the Board for the safekeeping of securities if the corpus of AIF is more than 500 crore rupees.

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Q. What is the requirement for appointing a custodian for the safekeeping of securities by AIFs?

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